I agree this would make a decent TSA.
It would be very frustrating to manipulate the random encounters since the number of steps to the next random encounter is determined after the last battle is over, although the encounter itself can easily be manipulated to allow running away easy (or before?).
The exp system allows you to catch up very quickly (not as much as the third one though, see image below), but you will lose your bonus exp if you use the red stone (which can be very significant if you are fighting a boss and your level is low).
The drill should also be considered in addition to the sword, since it seems you can out DPS the sword.
Fortunately unlike the 3rd one, running away is independent of your level, you can be very low level (with low speed) and still manage to not get hit at all.
The TSA might be a tad bit repetitive, since you will probably just end up doing attack, block, attack again, repeat until dead.
[URL=
http://img399.imageshack.us/my.php?image=summonnightcraftswordmojy7.png]
[/URL]